This article needs additional citations for verification. Please help improve this articlebyadding citations to reliable sources. Unsourced material may be challenged and removed.
Find sources: "Cost auditing" – news · newspapers · books · scholar · JSTOR (February 2017) (Learn how and when to remove this message) |
Acost audit represents the verification of cost accounts and checking on the adherence to cost accounting plan. Cost audit ascertains the accuracy of cost accounting records to ensure that they are in conformity with cost accounting principles, plans, procedures and objectives.[1] A cost audit comprises the following;
Basic qualification for a cost auditor is the prescribed examinations and practices by the professional nd regulatory body for cost and management accountancy of the country. In case a person is the member of other professional bodies, exemption should be allowed to him/her under the mutual recognition agreements (MRAs) to become a cost auditor.
Cost audit comprises the following three steps:
I/We,........................................... having been appointed as Cost Auditor(s) under Section ........ Companies Act of .........................................................(mention name of the company) having its registered office at .................................................... (mention registered office address of the company) (hereinafter referred to as the company), have audited the books of account prescribed under the said Act, and other relevant records in respect of the .................................... (mentions name/s of product group/s) for the period/year.............................(mention the financial year) maintained by the company and report, in addition to my/our observations and suggestions in para 2.
Date: (date of sudit report)
Place: (place where audit report was signed)
Signature of cost auditor
Membership number